Accumulated Fund

DEFINITION of 'Accumulated Fund'

The capital fund of a nonprofit organization. Money is directed into the accumulated fund when revenues are greater than expenditures; money is directed away from the accumulated fund (withdrawn) when expenditures are greater than revenues.

BREAKING DOWN 'Accumulated Fund'

Nonprofit organizations, such as clubs, societies and charities, have capital accounts known as accumulated funds. Accumulated funds include money that is set aside for the purchase of capital or fixed assets, including real property and certain equipment.

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